Tips for choosing the right balance transfer credit card


ADVERTISING DISCLOSURE: is an independent, advertising-supported web site. receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Balance Transfer Cards » Tips for choosing the right balance transfer credit card

Tips for choosing the right balance transfer credit card

The content is accurate at the time of publication and is subject to change.
Choosing the right balance transfer credit card is not always the simplest thing to do. It is a constant game where credit card issuers and the credit card holders are trying to outsmart each other. Therefore, if you need to benefit from a balance transfer you have to strategize well, pick the right card and use its terms well. Here are some things you need to keep in mind when selecting and using a balance transfer credit card to your benefit. Check the introductory period In the present situation, if you have a good or fair credit rating, then going for an introductory period less than 9 months means that you are not getting a good deal, and the transfer to another card isn't really worth it. The promotional period on some credit cards is as high as 18 months, although such cards are approved only for those with excellent credits. But the bar is set for at least 1 year of 0% APR, so that you can think about going for the balance transfer. Check the fine print There is a big gap between the cup and the lip. That is the case with credit card terms where the promotions are always undermined by the fine print. A card promoted with 0% APR for over a year could offer you an introductory period of just 6 months in the pretext that your credit rating is not satisfactory. So you need to thoroughly inspect the fine print of the card to find out all the terms and regulations, and also everything about the deal, to ensure there are no limitations or caps which have been sneaked in. Fees Ensure that the credit card to which you are planning to balance transfer to, doesn't have any hidden fees. It is necessary to ensure you are not paying any annual fee or balance transfer fee if you can avoid them. If you cannot, ensure they are not too high, or they might start eating into your savings. Therefore you must be spot on with your calculations to ensure that the saving you make due to 0% APR is significant and justifies a balance transfer. Credit limit You must check that the credit limit on the new credit card is equal to or more than the previous card. If your credit limit is reduced, then your credit rating will be affected too. The credit utilization has to be lower, which means for the same expenses you will score more on a card with higher credit limit. 0% APR on purchases too Many credit cards offer 0% only on the balance transfer amount and not on purchases or other charges, so any payments made at the end of the month are contributed only towards the balance transfer amount, leaving you to pay interest on the outstanding balance, (purchases, cash advances etc.) In order to stay away from these strategies, ensure that you take a credit card where 0% APR is offered on all purchases too, at least for the first 6 months.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Posted: November 8, 2018

Thanksgiving is coming, and whether you are hosting a meal or coming as a guest, your spendings are going to accumulate faster than you can notice. A holiday feast is a costly matter – each year Americans spend around $50 on a Thanksgiving ... Continue reading
The Best Credit Card for Earning Cash: Discover it® Cash Back

The Best Credit Card for Earning Cash: Discover it® Cash Back

Posted: November 2, 2018

You’ll have hundreds of dollars in your pocket in no time because you’ll earn money back on every purchase you make with this card. There are no restrictions on the amount of cash back you can get, and Discover even matches every penny you ... Continue reading
Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Posted: October 10, 2018

Nights are drawing out, the wind is colder every day and you already feel the lightest breath of winter on your face - autumn is here. Holidays are over, kids are back to school and all you are left with are hefty holiday bills that you ... Continue reading
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!